Qingdao Holdings International Ltd reports 55,412% CAPEX growth in 2016 while 39.7% Revenue decline
21/06/2016 • About Qingdao Holdings International Ltd (
$499) • By InTwits
Qingdao Holdings International Ltd reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Qingdao Holdings International Ltd is a company in decline: FY2016 revenue growth was -39.7%, 5 years revenue CAGR was -10.8%
- The company operates at negative EBITDA Margin: -128.6%
- Qingdao Holdings International Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -69.0%0
- Qingdao Holdings International Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 122.0%. At the same time it's a lot of higher than industry average of 60.7%.
- CAPEX is quite volatile: 28.3 in FY2016, 0.051 in FY2015, 0.0050 in FY2014, 0.088 in FY2013, 0.055 in FY2012
- The company has unprofitable business model: ROIC is at -2.5%
- It operates with high leverage: Net Debt/EBITDA is 6.1x while industry average is 2.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Qingdao Holdings International Ltd ($499) key annual financial indicators
| mln. HKD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 8.183 | 9.338 | 9.122 | 7.732 | 4.660 | -39.7% |
| EBITDA | -6.157 | -3.653 | -2.982 | -8.141 | -5.991 | |
| Net Income | 10.362 | -1.414 | 0.713 | 7.192 | -11.459 | -259.3% |
Balance Sheet
|
|---|
| Cash | 168.164 | 141.671 | 198.032 | 132.153 | 127.645 | -3.4% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.055 | 0.088 | 0.005 | 0.051 | 28.311 | 55,411.8% |
Ratios
|
|---|
| Revenue growth | -0.7% | 14.1% | -2.3% | -15.2% | -39.7% | |
| EBITDA growth | 61.8% | -40.7% | -18.4% | 173.0% | -26.4% | |
| EBITDA Margin | -75.2% | -39.1% | -32.7% | -105.3% | -128.6% | -23.3% |
| Net Income Margin | 126.6% | -15.1% | 7.8% | 93.0% | -245.9% | -338.9% |
| CAPEX, % of revenue | 0.7% | 0.9% | 0.1% | 0.7% | 607.5% | 606.9% |
| ROIC | -1.8% | -1.2% | -1.0% | -2.8% | -2.5% | 0.3% |
| ROE | 3.4% | -0.5% | 0.2% | 2.5% | -4.6% | -7.1% |
Revenue and profitability
The company's Revenue dropped on 39.7%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 23.3 pp from -105% to -129% in FY2016.
Net Income marign dropped on 339 pp from 93.0% to -246% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Qingdao Holdings International Ltd had CAPEX/Revenue of 608%. The company's CAPEX/Revenue surged on 607 pp from 0.94% in FY2013 to 608% in FY2016. It's average level of CAPEX/Revenue for the last three years was 203%.
Return on investment
The company operates at negative ROIC (-2.53%) and ROE (-4.58%). ROIC showed almost no change in FY2016. ROE decreased on 7.1 pp from 2.5% to -4.6% in FY2016.
Leverage (Debt)
The company has no debt. Cash decreased on 3.4%.
Appendix 1: Peers in Real Estate
Below you can find Qingdao Holdings International Ltd benchmarking vs. other companies in Real Estate industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Guangdong Land Holdings Ltd ($124) | | | | 24,971.2% | |
| GR Properties Ltd ($108) | 21.6% | -82.9% | 14.6% | 1,203.6% | |
| Wanda Hotel Development Co Ltd ($169) | | -51.4% | -86.2% | 1,071.2% | |
| Henderson Investment Ltd ($97) | -78.9% | | | 737.1% | |
| ITC Properties Group Ltd ($199) | -70.5% | -95.2% | 75.7% | 678.6% | |
| |
|---|
| Median (179 companies) | 16.6% | 13.1% | 5.3% | 4.5% | 7.7% |
|---|
| Qingdao Holdings International Ltd ($499) | | 14.1% | -2.3% | -15.2% | -39.7% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Renhe Commercial Holdings Co Ltd ($1387) | 79.0% | 95.2% | 97.9% | 99.9% | |
| Tern Properties Co Ltd ($277) | 96.7% | 98.4% | 98.4% | 98.7% | 98.8% |
| YT Realty Group Ltd ($75) | 94.4% | 96.6% | 96.7% | 97.6% | |
| Wah Ha Realty Co Ltd ($278) | 96.3% | 96.0% | 93.2% | 95.9% | |
| Soundwill Holdings Ltd ($878) | 53.1% | 74.5% | 46.9% | 95.7% | |
| |
|---|
| Median (161 companies) | 41.9% | 41.9% | 39.2% | 38.2% | 30.6% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Chinese Estates Holdings Ltd ($127) | 356.2% | 91.6% | 195.5% | 397.4% | |
| Zall Development Group Ltd ($2098) | 105.3% | 133.1% | 143.2% | 213.9% | |
| SOHO China Ltd ($410) | 113.6% | 80.8% | 104.0% | 201.9% | |
| Beijing Properties Holdings Ltd ($925) | -606.3% | 2,162.6% | 224.3% | 186.5% | |
| Swire Properties Ltd ($1972) | 154.5% | 114.6% | 73.2% | 100.3% | |
| |
|---|
| Median (179 companies) | 29.3% | 28.5% | 27.8% | 23.5% | 9.8% |
|---|
| Qingdao Holdings International Ltd ($499) | -75.2% | -39.1% | -32.7% | -105.3% | -128.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| LT Commercial Real Estate Ltd ($112) | 0.0% | 18.0% | 27,965.5% | 4,834.8% | |
| China Oceanwide Holdings Ltd ($715) | 0.8% | 0.3% | 2.0% | 880.6% | |
| Madex International Holdings Ltd ($231) | 174.5% | 519.7% | 205.3% | 350.6% | |
| Pacific Century Premium Developments Ltd ($432) | 2.9% | 323.1% | 351.2% | 340.6% | |
| Hon Kwok Land Investment Co Ltd ($160) | 20.6% | 157.3% | 144.5% | 296.3% | |
| |
|---|
| Median (179 companies) | 5.9% | 6.2% | 4.8% | 3.3% | 0.9% |
|---|
| Qingdao Holdings International Ltd ($499) | 0.7% | 0.9% | 0.1% | 0.7% | 607.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hydoo International Holding Ltd ($1396) | 44.3% | 62.0% | 12.9% | 16.6% | |
| Gemdale Properties & Investment Corp Ltd ($535) | 15.3% | 19.6% | 10.8% | 15.9% | |
| China Overseas Land & Investment Ltd ($688) | | 15.1% | 18.5% | 15.4% | 13.0% |
| Colour Life Services Group Co Ltd ($1778) | 44.2% | 47.9% | 29.3% | 14.5% | |
| Dalian Wanda Commercial Properties Co Ltd ($3699) | 26.8% | 19.6% | 12.3% | 14.4% | |
| |
|---|
| Median (181 companies) | 4.2% | 4.1% | 4.2% | 2.5% | 1.8% |
|---|
| Qingdao Holdings International Ltd ($499) | -1.8% | -1.2% | -1.0% | -2.8% | -2.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shui On Land Ltd ($272) | 22.1x | 13.2x | 17.1x | 54.2x | |
| Beijing Capital Land Ltd ($2868) | 7.1x | 4.6x | 11.7x | 49.1x | |
| Talent Property Group Ltd ($760) | | | | 43.0x | |
| Mingfa Group International Co Ltd ($846) | 2.5x | 3.0x | 6.3x | 42.9x | |
| Sunshine 100 China Holdings Ltd ($2608) | 9.9x | 12.4x | 12.9x | 42.3x | |
| |
|---|
| Median (137 companies) | 2.4x | 2.7x | 3.0x | 3.2x | 0.5x |
|---|
